Property Showcase – Frisco, TX Duplex

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One of my old co-workers, Kelly Decker, moved from Wilmington, NC down to Frisco, TX a couple of years ago and loves it. Property values in Frisco did not drop as much as they did in Wilmington mainly because they did not experience the same level of rapid appreciation. Frisco has grown from a little over 33,000 people in 2000 to over 100,000 people in 2008 making it the fastest growing city in the United States during that window. Like its neighbors in Plano, Frisco continues to prosper from the demand for homes in the Dallas-Fort Worth Metroplex.

Let take a look at what a duplex in Frisco is listed for at this time:

Address: 8659 Holly Street, Frisco, TX 75034
Site used to research the property – realtor.com (Presented by Brenda Rankin of Sovereign Realty)

This 3,310 sq/ft duplex is listed for only $239,944. The first unit is 1620 sq/ft and has 2.5 baths and 3 bedrooms. The listing does not give the square footage for the second unit but it does state that it also has 3 bedrooms and 2.5 baths. The units are currently rented for $1050 and $1100.

Let’s do a little math:

Assuming a purchase price of $235,000 with 25% put down on the mortgage (which you will need with most mortgage lenders or brokers to get the best mortgage rates and likely have no private mortgage insurance on an investment property – subject to change, consult with a mortgage professional for the most up-to-date underwriting guidelines).

Loan Amount = $177,000
Assuming Note Rate of  = $4.750% (which may be a little high as a 30 year rate on a primary residence right now is the 4.000% – $4.250% range).
Monthly P & I payment of  = $923.31

Not a bad cash flow if you can keep both of the units rented. Now, let’s take a look at the numbers if you lived in one unit.

Selling price of $235,000 – 5% down.
Loan Amount = $223,250
Assuming note rate of  = 4.250%
Monthly P & I payment of  = $1098.25 (keep in mind that this does not include taxes, insurance, pmi, or any hoa dues).

Not too shabby if your renters are paying for 80% of your monthly housing expenses.

If you are looking for financing assistance in that area, Kelly Decker runs a Texas mortgage team (see: www.txmortgagegroup.com) in nearby McKinney and Kelly lives in Frisco and is very familiar with the area. You can also get an idea of some other mortgage professionals serving your area using the mortgage rate table below. Please note that the pricing in the rate table is for primary residences and does not take into account adjustments for investment properties. If you’re considering using a duplex an you primary residence, you may not end up with adjustments. Consult with licensed mortgage professional for more information.

Nat Criss is one of the owners of ForTheBestRate.com. Nat has an extensive background in mortgage finance, real estate, and online marketing. Nat was previously the Marketing Director for AAXA Discount Mortgage, a mortgage company which conducted business in 26 states, and currently helps run CMG Equities, LLC and ILM Marketing. My Google Profile+

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